Protection Strategies
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Transcript of Protection Strategies
AXA Advisors, LLC. New York, NY 10104 (212) 554-1234GE 53766 (5/10)
Help Safeguard Your FamilyNo Matter What Challenges Life Has in Store
Insurance Products: • Are Not a Deposit of Any Bank • Are Not FDIC Insured • Are Not Insured by Any Federal Government Agency • Are Not Guaranteed by Any Bank or Savings Association
Life insurance is issued by AXA Equitable Life Insurance Company (New York, NY) and co-distributed by AXA Distributors, LLC and AXA Network, LLC. AXA Equitable, AXA Distributors, and AXA Network are affiliated companies and do not provide tax or legal advice.
Financial Protection
GE-53766 (5/10)
What Is Your Most
Valuable Asset?
Financial Protection
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Your Most Valuable Asset
Car Personal
PropertyRetirement
Plans/InvestmentsHome (Primary
Residence)$65,000 Future Earnings for 30
Years
Physical Assets
Assumes: Gross Values. No allowance for debt. No allowance for salary/asset growth. No deduction from future earnings for income taxes.* This presentation is designed to illustrate a concept. These numbers represent hypothetical assumptions.
35-year-old
30 Years to Age 65 (Retirement)
Current Income: $65,000
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Financial Protection Agenda
Protecting Your Most Valuable Asset
Your Family, Your Future Earnings Potential
Planning with Life Insurance
Preparing for the Unexpected
Disability and Long-Term Care
Understanding the Need
GE-53766 (5/10)
Protecting Your Most Valuable AssetWhat About Your Investment Strategy?
The role of your investment strategy is to help protect your savings and investments by:
Guarding against market volatility
Lowering tax liability
Offsetting effect of inflation
GE-53766 (5/10)
Protecting Your Most Valuable AssetThe Right Investment Strategy
The right investment strategy is important,
but . . .
It can only protect the assets you have already
accumulated.
Even the best strategy may not protect your most
valuable asset — your earning power.
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Protecting Your Most Valuable AssetYour Earning Power
Your earning power can be tremendous, but is only a potential asset.
What if your time is cut short?
It can only be realized over time.
But, time may not be on your side.
GE-53766 (5/10)
Protecting Your Most Valuable AssetLife’s Uncertainties
The things no one ever plans to happen:
Dying too soon
Getting sick or hurt and becoming unable to work for a long period of time, even for life
Needing long-term care
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Protecting Your Most Valuable AssetLife’s Uncertainties
You can’t predict
You can’t prevent
But you can plan
You Can Provide Protection
Life Insurance
Disability Income Insurance
Long-Term Care Insurance
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Planning with Life InsuranceThe Value of Life Insurance
Life insurance proceeds:
Pay final expenses and debts
Support the lives of your loved ones and
the future you all planned together
GE-53766 (5/10)
Planning with Life InsuranceThe Value of Life Insurance
Financial protection when your family needs it.
As long as premiums are paid, the full benefit will be paid.
Benefits are generally not subject to income taxes.
Benefits are generally paid promptly because they don’t
go through probate.
GE-53766 (5/10)
*Source: LIMRA International, Generations at Risk 2008
Many U.S. Households Are Underinsured:
One third of adults in the U.S. carry no life insurance
at all.
Today, insured adults are more likely to have only
group life insurance obtained through the workplace.
Planning with Life InsuranceThe Problem of Underinsurance
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The effects of premature death on a widow:
Expenses after the death of the spouse will be reduced by only 20%.
A widow’s benefits under her husband’s pension may be reduced by 50% upon his death.
Source: Women’s Institute For a Secure Retirement -- www.wiserwomen.org
Planning with Life InsuranceThe Problem of Underinsurance
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As a result of inadequate coverage, many surviving spouses may have to:
Take a second job
Work longer hours
Borrow money
Withdraw money from savings
— including retirement accounts
Sell the family home
Planning with Life InsuranceThe Problem of Underinsurance
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Tomorrow?
Next Month?
Next Year?
If you or your spouse died tonight,
how would your family manage financially…
Planning with Life Insurance Question 1: What if . . . ?
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Mortgage/Rent
Car payments
Food and clothing
Education expenses
Health care
Childcare, housekeeping
Credit card payments
Could your family meet ongoing expenses?
Planning with Life Insurance Question 1: What if . . . ?
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College education for your children
A secure retirement for your spouse
Or . . .
Would assets be liquidated or the house sold?
Would your family have funds for future plans?
Planning with Life Insurance Question 1: What if . . . ?
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Disability and Long-Term Care Question 2: What if . . . ?
If you or your spouse got sick or were injured today and unable to work for a long time . . .
How would your family manage financially
Tomorrow?
Next Month?
Next Year?AXA Equitable does not issue disability income insurance or long-term care insurance.
GE-53766 (5/10)
Disability is more common than you think:
Over 51 million people are classified as disabled, representing 18% of the population.
In the U.S., a disabling injury occurs every 1 second, a fatal injury occurs every 4 minutes.
Three in 10 workers entering the work force today will become disabled before retiring.
Sources: U.S. Census Bureau, Public Information Office, November 2008
National Safety Council, Injury Facts 2008 Ed.
Social Security Administration, Fact Sheet January 31, 2007
Disability and Long-Term Care Disability Issues
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Possible sources of disability income insurance:
Employer
Worker’s Comp
Social Security
Individual Disability Income Insurance Policy
Disability and Long-Term Care
Disability Issues
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How would you pay for long-term care
services if they become necessary for
yourself or your spouse?
Disability and Long-Term Care Question 3: What if . . . ?
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Disability and Long-Term CareLong-Term Care Issues
What services are included in long-term care?
Help with shopping, cleaning, preparing meals
Home health care
Adult day care
Respite care
Assisted living facilities
Hospice care
Nursing homes
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What are the chances you’ll need long-term care?
About 9 million Americans over the age of 65 will need long-term care services and the number will increase to 12 million by 2020.
About 70% of individuals over age 65 will require at least some type of long-term care services during their lifetime.
Disability and Long-Term CareLong-Term Care Issues
Source: www.longtermcare.gov/LTC
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What does long-term care cost?
The average hourly rate for Home Health Aides (HHAs) provided by a home care agency is $19 per hour.
The average daily rate for a private room in a nursing home is $203.31 or $74,208 annually.
The average daily rate for a semi-private room in a nursing home is $183 or $66,796 annually.
Source: Genworth Cost of Care Survey, 2009
Disability and Long-Term CareLong-Term Care Issues
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What about government assistance?
Medicare provides extremely limited coverage.
Medicaid requires that you meet strict eligibility
requirements.
Disability and Long-Term CareLong-Term Care Issues
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Why do you need long-term care insurance?
The biggest threat to your retirement savings may not be
A bear market
Or taxes
Or inflation
The biggest threat to your retirement savings could be
having to pay for long-term care for you or your spouse.
Disability and Long-Term CareLong-Term Care Issues
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SummaryFinancial Protection
Protecting Your Most Valuable Asset
Your Family, Your Future Earnings Potential
Planning with Life Insurance
Preparing for the Unexpected
Disability and Long-Term Care
Understanding the Need
GE-53766 (5/10)
What can you do?
Now is the time to do something to help safeguard your family’s financial independence.
Now is the time to choose insurance coverage that best protects your family — today and tomorrow.
Now is the time.
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Financial Protection
The information provided is based on our general understanding of the subject matter discussed and is for informational purposes only. Please consult your tax and/or legal advisors regarding your particular circumstances.
Thank You!
G24577Cat. #135049